BREXIT – Changes for UK employers sending workers to the EU, the EEA or Switzerland

Posted 23rd September 2019

Currently,
if you send your employees to work in the EEA, your employee might be able to
carry on paying national insurance in the UK for up to 2 years. This will protect the employee’s UK national
insurance record, which affects rights to benefits and the state pension. This will also provide proof for the
authorities in the country where the work is performed that social security
contributions are not required. To do
this, you or your employee will usually be required to apply for a Portable
Document A1.

In
the event the UK leaves the EU without an agreement, there may be changes for
UK employers who have people working in the EU, the EEA or Switzerland.

The
EU Social Security Coordination Regulations ensure employers and their workers
only need to pay social security contributions (such as National Insurance
contributions in the UK) in one country at a time. However, if we leave without
an agreement, the coordination between the UK and the EU will end.

This
will mean that your employees working in the EU, the EEA or Switzerland may
need to make social security contributions in both the UK and the country in
which they are working at the same time.

Businesses
will need to do the following to prepare:

If
your employee is currently working in the EU, the EEA or Switzerland and has a
UK-issued A1/E101 form, they will continue to pay UK National Insurance
contributions for the duration of the time shown on the form.

However,
if the end date on the form goes beyond Brexit day, you will need to contact
the relevant EU / EEA or Swiss authority to confirm whether or not your
employee needs to start paying social security contributions in that country
from that date. The European Commission’s website will help you find the relevant
country’s authority.

If
your employee is a UK or Irish national working in Ireland, their position will
not change after Brexit, they are covered under the international agreement
signed by the UK and Ireland in February 2019. You, as their employer, won’t
need to take any action.

A
replacement for the A1/E101 form will be issued for new applications after
Brexit. This ensures your employee continues to make UK National Insurance
contributions to maintain their social security record. You can still use
the same form on GOV.UK to make an application after the UK has
left the EU.

The
UK Government has announced it is working to protect UK nationals by seeking
reciprocal arrangements with the EU or Member States to maintain existing
social security coordination for a transitional period until 31 December 2020.
Individuals in scope of these arrangements will only pay social security
contributions in one country at a time.